The NAM-supported Cyber Intelligence Sharing and Protection Act (H.R. 3523) recently passed the U.S. House of Representatives with strong bipartisan support. This bill is the first step toward better securing our nation and our economy from emerging threats in cyberspace. The focus now shifts to the Senate which has signaled it will take up cyber legislation later this month.

Manufacturers supported this legislation because it would permit the public and private sector to share cyber threat intelligence with each other. As owners and operators of the vast majority of our country’s critical infrastructure, manufacturers are sometimes the first line of cyber-defense in today’s interconnected world. If able to provide and receive intelligence – while vigorously protecting the privacy of their customers, suppliers, and employees – the private sector will be better able to protect itself from those with malicious intent.

What this legislation does not do is create a new bureaucracy or a regulatory regime. It does not give the government any ability to monitor or censor private networks. In fact, no new authority is granted to the government. That includes the intelligence community, the Department of Defense, and the National Security Agency. Most importantly, company participation is completely voluntary with no entity required to participate or share information.

There is broad support across the business community for this NAM-endorsed approach. The Senate now has an opportunity to send a bill to the President for his signature. Manufacturers know that our economic security is directly related to our cybersecurity. It is time for the Senate to act on legislation that will strengthen our nation’s cybersecurity and not create a new and unnecessary regulatory burden.

As part of what is being called “Cyber Week” by House Leadership, the chamber is scheduled to vote on four cybersecurity bills Thursday and Friday. The NAM sent a letter to Capitol Hill this morning in support of all the bills. Why do we support efforts to strengthen the cybersecurity of our nation? We tell House Leaders this in our letter:

Manufacturers through their comprehensive and connected relationships with customers, vendors, suppliers, and governments are entrusted with vast amounts of data. They hold the responsibility of securing this data, the networks on which it runs, and the facilities and machinery they control at the highest priority level. Manufacturers know the economic security of the United States is directly related to our cybersecurity.

Since manufacturers build and own the U.S. cyberinfrastructure and ecosystem, the NAM has been advocating aggressively for common-sense legislation that removes the barriers that prevent the public and private sector from sharing cyberthreat information. The Cyber Intelligence Sharing and Protection Act (H.R. 3523), one of the bills being considered this week, helps to solve this problem.

The NAM has also called for improving how the Federal government coordinates its cybersecurity R&D efforts as well as the importance of a highly-skilled Federal cyber-workforce. The other three bills on the calendar address these issues important to manufacturers.

We applaud the bipartisan efforts in the House to get these bills to the floor. We are looking forward to a full debate in the Senate which is likely coming soon!

The California State Senate will soon take up SB 1161, a measure on internet-based services and the negative impact unnecessary regulation can have on their growth and ability to create jobs.

This bill would reaffirm California’s current stance toward IP enabled services – useful tools to consumers and businesses such as Microsoft’s Skype – and other innovative technologies that can see their economic growth stifled for the developers and the customers that use them if unnecessary regulations are imposed. This measure would not affect current law protecting consumers of the ability of the legislature to enact future legislation.

Manufacturers are continuing to increase their dependence on the internet and the services enabled and delivered by it to serve their employees, customers, and shareholders. Companies rely on an open and competitive internet to help ensure their growth. In order to continue to foster continued investment, job creation and innovation in this area, it is important that policies, like California’s not unduly regulate services.

The California Senate Committee on Energy, Utilities and Communications will hold a hearing on this measure April 17.

Manufacturers make significant investments in information technology to increase their competitive edge both here and abroad. Software specifically helps drive efficiency in product design, communication, manufacturing processes, customer safety, enterprise efficiency, and even environmental impact. Now more than ever the IT leveraged by manufacturers provides an increasing competitive advantage in the global marketplace.

Unfortunately, not everyone is playing by the rules. Many companies – usually from outside the U.S. – are illegally utilizing pirated software inside their enterprise. This practice provides for an unfair advantage over manufacturers that follow the law. It can lead to job loss, a drain on innovation, and a direct negative impact on the bottom line.

A bipartisan group of sixteen Senators recently sent a letter to the Federal Trade Commission (FTC) calling for action on this practice that hurts manufacturers. The Senators cited a recent request submitted to the FTC by the National Association of Attorneys General (NAAG) asking for the Commission to address this unfair competition.

Last year when the NAM released our “Four Goals for Economic Growth” it gave policymakers the blueprint for ensuring the U.S. remains the best place in the world for manufacturers. In it, we urge them to recognize intellectual property (IP) as the basis of America’s innovative economy. The NAM knows that IP is a critical aspect of our manufacturing economy. The NAAG says in their letter that “The importance of the manufacturing sector to the U.S economy cannot be overstated.” We’re glad to see more leaders recognize that if you aren’t doing what is right for manufacturers and their IP, you aren’t doing what’s right for the economy.

The highest-ranking Republicans of five Senate Committees introduced a bill today targeted at increasing the ability of companies to share cyber threat information and best practices with each other and with the government.

The Strengthening and Enhancing Cybersecurity by Using Research, Education, Information, and Technology Act or “SECURE IT” Act would allow for voluntary information sharing across the cyber community and protect information owners from liability stemming from those actions. The new bill would also help secure government networks, increase the penalties for cybercrime, and would prioritize cybersecurity research using existing government dollars.

The authors of the SECURE IT unveiled the bill at a press conference this morning. In each Senator’s remarks at the event consistent themes emerged: The goal of the legislation is to break down the existing barriers to information sharing without increasing the liability or regulatory burden on companies.

The NAM believes an effective and trusted partnership between the public and private sectors is the best way to reduce the cyber risk faced by manufacturers today. This can be accomplished by sharing information in a penalty-free environment and not adding to the regulatory burden when there are mechanisms that already exist to monitor and strengthen our networks.

We are pleased that an issue of such high importance to manufacturers is now center-stage in both the House and Senate legislative agenda. We encourage the leaders on Capitol Hill to work together and address this important issue to manufacturers.

The long-awaited and much-discussed cybersecurity bill was introduced in the Senate today. It is titled the Cybersecurity Act of 2012, S. 2105. The authors of the bill have worked long and hard on this legislation and they should be applauded for their attempt to address this issue important to manufacturers.

Manufacturers through their comprehensive and connected relationships with customers, vendors, suppliers, and governments are entrusted with vast amounts of data. They hold the responsibility of securing this data, the networks on which it runs, and the facilities and machinery they control at the highest priority level. Manufacturers know the economic security of the U.S. is directly related to our cybersecurity. 

S.2105 recognizes the critical link between the expertise of the private sector and role of government and puts a heavy emphasis on collaboration between the two. The bill also calls for creating mechanisms that will encourage government sharing of timely and actionable threat and vulnerability information with the private sector. It addresses the issues of securing government-owned networks, streamlining existing cybersecurity offices, and dedicating significant attention to developing the next generation of the Federal cyber workforce.

While many of these provisions in the newly-introduced legislation have merit, the National Association of Manufacturers remains concerned about the new regulatory regimes created throughout the bill. The sponsors have said publicly there will be no new bureaucracies or heavy-handed regulation as a result of this bill. (continue reading…)

For at least one week this year the loudest bells and whistles in Las Vegas were not in the casinos; they were found in convention center at the 2012 Consumer Electronics Show (CES). Manufacturers took center stage and the NAM was there to see it live and in person. We walked the show floor and talked to our member companies about their latest technology. We also had an opportunity to hear first-hand from Members of Congress what to expect on Capitol Hill in 2012.

Most conventioneers were exposed to something those of us at the NAM and our members already know: manufacturers are driving innovation in technology. They saw Ford’s latest cars stocked full of computing power. They learned how Microsoft’s Kinect is driving new breakthroughs in how manufacturers can interact with their customers. They explored how Texas Instruments is helping manufacturers reduce waste, increase energy efficiency, and improve safety.

In addition to new innovations, Washington’s tech policy leaders were in town. We talked with staffers from the Hill who are championing legislation to shut down websites that sell counterfeit goods. We heard lawmakers announce intentions to push legislation to protect data of consumers. We heard the FCC chairman talk about the spectrum “crunch” and what that means to companies in the US.

It was clear that all those in attendance now understand even more that manufacturers are the bedrock of our innovation economy – from the technology that fits in the palm of your hand and the kind that you park in your driveway.

Senator Lamar Alexander (R-TN) addresses the Science and Technology Caucus as Dr. George Thompson of Intel Corporation and Julie Christodoulou of the Office of Naval Research look on.

Representatives from the business community, academia, both sides of Capitol Hill, and think tanks recently packed the Kennedy Caucus Room in the Russell Senate Office Building to hear a panel of industry and government experts discuss the importance of advanced manufacturing to U.S. growth. NAM-member companies Verizon and Intel joined representatives from the Departments of Defense and Energy on a panel that talked about the benefits of advanced materials and their widespread use throughout the public and private sector.

The honorary host of this NAM-organized event was the bipartisan Senate Science and Technology Caucus. Co-Chairs Lamar Alexander (R-TN) and Mark Udall (D-CO) opened the event and highlighted the importance of technology in manufacturing.

The panel of industry and government experts all agreed that our country has embraced manufacturing as critical to economic growth—and that policymakers need to do the same. The overarching message was that leveraging the development of advanced materials in products and processes will benefit our global leadership position by reducing manufacturing and raw material costs.

Americans unknowingly reap the benefits of advanced materials every day.  They are used in everything from cellphones to semiconductors and spur health care solutions, improve transportation and enhance public safety. They bolster high-tech innovation and enhance national security.  Manufacturers, in partnership with government and academia, drive efforts to discover advanced materials and rapidly integrate them in their products and processes. As clearly demonstrated at this event, this proven and successful partnership will continue to foster manufacturing growth and job creation.

Peter Davidson of Verizon Communications speaks to the Science and Technology in the Russell Senate Office Building.

Senator Mark Udall (D-CO) addresses the Science and Technology Caucus.

“Over the past decade, the Global Positioning System has grown into a global utility whose multi-use services are integral to U.S. national security, economic growth, transportation safety, and homeland security, and are an essential element of the worldwide economic infrastructure.”

This excerpt from the President’s Space-Based Positioning, Navigation, and Timing (PNT) policy document echoes the NAM’s position on GPS technology. This policy has been in effect since 2004 and is part of our country’s National Space Policy.    

Why does this matter to manufacturers? One major reason is that NAM members increasingly rely on an unrestricted GPS for a variety of applications and functions essential to safety and competitiveness.

Another reason manufacturers should take note – the next meeting of the National Space-Based PNT Advisory Board is Wednesday, November 9^th in Alexandria, VA. This is a federal advisory committee made up of experts from academia and industry to advise the U.S. government on PNT policy. One of the discussions that should be a highlight of the meeting is a panel on GPS technology and the potential interference issues those signals may face if a company called LightSquared launches its broadband network. The effects of such interference could be wide-ranging and put jobs at risk. In fact, the NAM filed comments with the FCC in March and August on this issue expressing our concern on behalf of all manufacturers.

This meeting is open to the public. If you are in the Washington D.C. area and happen to be a manufacturer that relies on GPS technology, you might want to stop by and check it out.

Brian Raymond is the Director of Technology Policy for the NAM. 

FCC Chairman Julius Genachowski made a much-anticipated speech today announcing the FCC’s plan to reform the Universal Service Fund (USF) and the Intercarrier Compensation (ICC) system. Both of these programs are outdated and need to be modernized to keep pace with 21^st century demands of today’s manufacturers and their customers in all corners of the United States.

Those consumers and businesses without access to wired and wireless broadband technology are unable to reap the benefits and leverage the products and services of manufacturers. The proposed Connect America Fund will support the buildout of the broadband infrastructure to those underserved Americans.

Modernizing the USF and how it is collected and distributed will help ensure a smooth transition to the Connect America Fund. Chairman Genachowski also proposed expanding dedicated support to extending mobile broadband as well. This plan will be considered at the next open meeting of the FCC at which all commissioners are expected to vote on it.

The NAM is strongly supportive of increased deployment of high-speed Internet services and an Internet that is free from regulation. At this critical time in our nation’s economy, high-speed voice, video and data services provide limitless opportunities for manufacturers to innovate and create jobs. The NAM will send this message to the FCC in advance of the open meeting and we encourage you to do the same. 

Brian Raymond is director of technology and domestic economic policy, National Association of Manufacturers.